BOROUGH FINANCE

Bay of Plenty Beacon, Volume 3, Issue 298, 28 April 1941, Page 3

BOROUGH FINANCE

TREASURER'S REPORT

POSITION SATISFACTORY

At last week's meeting of the Whakatane Borough Council the treasurer, Mr D. V. Saunders, presented the annual statement of accounts and his report read as follows:-!— With the continued growth arid development of the' Borough revenues in all: departments continue to increase. In general, amounts due to the council have this year been met more promptly than previously and receipts have reached the record figure of £30,8(51, being in the General Account £18,418 and the Electricity Department £12.443. Excellent Rate! Collection. Tn the General Account the most important item, for various purposes, is rates, and this year (excluding Harbour Board and native) the sum of £8987 was levied —collections totalled £8800 or 97.9 per cent (95.8 per cent in the previous year) the total arrears for all years of rates outstanding at March 31, £745, is made up of Native £213 and European £532, the Crown having this year met its rating obligations in full pursuant to the arrangement made with the Municipal Association. Revenue l'roin license fees at £1200 is down £168 on the figure for the previous yelar, the items mainly affected being Heavy Traffic and Drivers Licenses "and Building Permits.

Progress payments of £500 each in respect of work being done for the. Housing Department on road construction at Sutherland! Road and Ramson Road, and a transfer of £800 from the Electricity Department (per estimates) are other main items of receipts appearing in the General Account. A total of £5160 was expended l during the year on streets ancl highways, drainage and other constructional work on the council's own behalf and thai of the Housing Department, and the works garage and store premises was erected at a cost of £44!). Water Supply Finance. In the water supply system the Hillcrest supply was improved at a cost of £205, and the substantial balance; of £606 is carried forward to meet in part the council's order for additional pumping plant. Advice has been received that the motor for such plant has been shipped from England but no advice is to hand respecting the pumping unit. Further principal repayments of loan moneys totalling £2556 were made during the year. The aggregate net cash credit balance of the several accounts comprising the General Account totalis £2793. This figure is greiater than that existing last year but it includes the substantial sum reseirved for the purchase of pumping equipment and referred to above. The excellent rate collections are also reflected in this substantial balance. Electricity Department. With the assistance of the 19.30 loan authority the Electricity Department has been enabled to make a substantial financial recovery, a cash debit balance of £263 at the commencement of the year being transformed into a credit balance of £435 over the years working. Net receipts from sundry consumers increased from £9592 to £10,582 (an increase of 10.3 per cieint) and £625 was received on Revenue Account from the sale of Head works plant and equipment. Capital expenditure in this department at £3413 wa * again considerable, and this was Aiicinced £2000 from revenue and 1140."' under the loan authority. Although arrangements tentatively were made for the hypothecation of the debentures in this loan, it has been found possible to carry on under thq authority and utilising

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all normal credits and without recourse to raising any portion of the loan. This method!, while complying with statutory requirement's, has proved most economical. It is considered that the debit balance in the Loan Account should be liquidated by transfers annually of £500 from the revenues of the undertaking (this being the stipulated sum to be repaid annually had the loan been raised 1 ) and a transfer has been made accordingly of £500 in the accounts presented herewith. The sum of £2484 was paid to the Power Board for power purchased (£2045 last year—an increase of 21.5 per cent). The assets at the headwords now are of nominal value only and when closing the accounts for theyear the opportunity was taken to write down the items Headiwcrks "Pipe Line" and "Plant andi Equipment" c.ach by £2000. The remaining balance and tlx? other Headworks "Assets" will require progressively to be written off, and a satisfactory method will be discussed with the Auditor on liis next visit. A final writing off of the fietitious assets Engineering Expenses, Preliminary Expenses, and Interest on Loan*- from Loans, totalling originally was this 3'car nuufc. and it is intend'ed to perpetuate the reoc.'-d of the position in thj I Balance Sheet,